Pilgrim's Pride (PPC+1.8%) says the acquisition of GNP Company is expected to be immediately accretive to EPS and provide annual synergies of $20M.

The company also sees capturing an estimated present value of ~ $28M in tax savings and a post synergies EBITDA multiple of 3.9X.

PPC on the deal: "The acquisition complements Pilgrim’s existing business both in geography and differentiated branded products, presenting an opportunity to immediately strengthen the company’s position in fast growing and higher margin branded retail product categories, such as natural and organic."

Meat stocks are having a rough day after a story in The New York Times throws a spotlight on the elevated level of chicken pricing. Other protein prices have subsided amid an abundant level of corn and soybeans.

The industry is under scrutiny for setting prices in accordance with the obscure Georgia Dock Index which relies on reporting from major producers.

Tyson Foods (NYSE:TSN) is now down 10.2% on concerns raised by Pivotal Research about a class action lawsuit that alleges major collusion among producers. The investment firm thinks the legal action will shine a big regulatory spotlight on the sector.

Tyson has gone on record to dispute the "speculative conclusions" raised in the Pivotal Research report, but clearly the genie is out of the bottle.

Sanderson Farms (SFM-1.6%) and Pilgrim's Pride (PPC-4.7%) also sharply lower in midday action. Hormel (HRL-0.6%) and JBS (OTCQX:JBSAY-1%), which were not named in the class action lawsuit, trade roughly in-line with broad market averages.